At a glance
- Morningstar puts total model assets at third-party providers such as asset managers and investment strategists near $1 trillion.
- Standard lineups leave gaps for some advisors, which is why custom models emerged.
- For RIA principals who outsource allocation, the due-diligence question is whether a provider can build to their preferred funds and vehicles at scale.
Custom model portfolio assets reached $258 billion as of March 31, 2026, up 40% from a year earlier, according to Morningstar data reported by WealthManagement.com.
Morningstar puts total model assets at third-party providers such as asset managers and investment strategists near $1 trillion. Standard lineups leave gaps for some advisors, which is why custom models emerged. Providers have added multi-manager, public-private and tax-aware models, yet home offices and advisors still find mismatches with their preferred funds, asset classes or vehicles. Custom builds let providers tailor strategies without giving up the efficiency of models.
For RIA principals who outsource allocation, the due-diligence question is whether a provider can build to their preferred funds and vehicles at scale. WealthManagement.com said delivering bespoke work at scale is the providers' new challenge. It also said many home offices and advisors are looking to cut the number of partners in their ecosystems.
Reported by the RIA desk from WealthManagement.com. Published . Corrections